Murang Kuryente Act

Case Overview and Summary

Summary of Republic Act No. 11371 (Murang Kuryente Act)

Declaration of Policy (Section 2)
- The State shall implement policies and programs to ensure transparent and reasonable electricity prices for consumers by minimizing universal charges for stranded contract costs and stranded debts.

Definitions (Section 3)
- Joint Congressional Energy Commission (JCEC)
- Malampaya fund
- Malampaya Natural Gas Project
- Net government share
- Net national government share
- Net production proceeds
- Stranded contract costs of the National Power Corporation (NPC)
- Stranded debts of the NPC
- Universal charge

Use of Malampaya Fund (Section 4)
- ₱208 billion from the net national government share of the Malampaya fund shall be used for payment of stranded contract costs and stranded debts transferred to and assumed by the Power Sector Assets and Liabilities Management Corporation (PSALM).
- Annual allocations from the Malampaya fund for payment of stranded contract costs and stranded debts shall be included in the General Appropriations Act.
- Any remaining and future proceeds of the net national government share from the Malampaya fund shall remain in the Special Account to finance energy resource development and exploitation programs.
- The Department of Budget and Management (DBM) shall ensure timely release of amounts allocated and appropriated to PSALM.
- If stranded contract costs, stranded debts, and anticipated shortfalls are fully paid before exhaustion of the allocated amount, the remainder shall be used for energy resource development and exploitation programs.
- The universal charges for stranded contract costs and stranded debts currently being collected may be covered by the allocated amount from the Malampaya fund.

Regular Reports (Section 5)
- PSALM shall submit an annual projected cash flow statement and an annual actual cash flow statement of stranded contract costs, stranded debts, and anticipated shortfalls, as well as its debt payment and independent power producer contract payment schedule to DOE, ERC, DOF, DBM, and JCEC.
- Projected cash flow statement shall be submitted on or before June 30 of the preceding year, and actual cash flow statement on or before June 30 of the succeeding year.
- PSALM shall coordinate with DOE, DOF, and DBM to ensure consistent recordkeeping of disbursements from the Malampaya fund.
- PSALM shall make all reports available to the public through its website.

Congressional Oversight (Section 6)
- The JCEC shall exercise oversight powers over the implementation of this Act.

Implementing Rules and Regulations (Section 7)
- Within 90 days from the effectivity of this Act, the DOE and DOF, in consultation with DBM, Bureau of the Treasury, and PSALM, shall promulgate the necessary rules and regulations.
- Upon effectivity of the implementing rules and regulations, no new universal charges for stranded contract costs and stranded debts shall be collected.

Separability Clause (Section 8)
Amendatory Clause (Section 9)
Repealing Clause (Section 10)
Effectivity (Section 11)
- This Act shall take effect 15 days after its publication in the Official Gazette or in a newspaper of general circulation.